Given the increasing commoditisation of financial services, brought about by digitisation and open banking, increased competition from agile, innovative and cashed up fintechs and a growing interest in financial wellness, customer engagement is rapidly climbing to the top of the list of priorities of financial services executives looking to acquire and retain customers. For those for whom this is true, understanding the rules for engagement become mandatory study.
Mihály Csíkszentmihályi (pronounced “Me high? Cheeks sent me high! “) was the head of psychology at the University of Chicago is is most well known for his work on “The Flow” this work unpacks what it takes to be fully engaged.
At the heart of his study is a model that defines flow. At its center is the idea that to be in the flow, the challenge needs to be just slightly ahead of the skill level. In this way the challenge builds skill, enabling the “player” to take on the next challenge. When the skill and challenge are mismatched the player falls out of the flow.
In addition to challenge and skill being matched Mihaly stipulates two additional conditions in order to create flow and therefore engagement
1. There are clear goals every step of the way. When it comes to money, there are many demands, some of which provide instant gratification whilst others are deferred. For an engaging experience there must be a clear purposes, providing the customer a sound understanding of what to do next. When banking is provided as a utility, as with many banking experiences today, this is not true
2. There is immediate feedback to one’s actions. When you’re in flow, you know how well you’re doing. Whilst most banking applications provide transaction feedback, confirming a transaction, the customer is rarely left knowing whether what they did was right, wrong or indifferent. Money is complex, with many left not understanding the rules or whether what they are doing is correct. To get customers engaged this must change.
Owen Schaffer of DePaul university extends this work in stating that “Making designs more fun is a key strategy that allows companies to engage their customers and give them an experience that will have them wanting to come back again and again . He augments Mihaly’s work by adding that customers must know
- What to do.
- How to do it.
- How well they are doing.
Ease of use as a design paradigm doesn’t solve these issues. They assume the user knows these things . The reality of many peoples financial situations, literacy and the tools they are using (banking apps) sees them left out of the flow and dis-engaged.
There is much work to be done to move the dial. The application of flow and game design is key to the task at hand.
Moroku’s GameSystem methodology presents financial services companies with the opportunity to create an innovative digital road-map centered around customer engagement and success. It is targeted at those organisations who, in the face of Open Banking and Digital Challengers are looking to change the game by firstly understanding the rules of engagement beyond “Ease of Use”
For an obligation free discussion on how the process works and how you can access it please email us